CCN reports that bitcoin purchases reached a new high in Venezuela as the economy there reaches new lows. The International Monetary Fund (IMF) sees inflation in the Southern American country as reaching 1.37 million percent by the end of the year. The IMF forecasts 2019 inflation hitting ten million percent there.⠀
Even though inflation is pushing up the bitcoin volume up in terms of the local currency, the Bolivar, the number of bitcoins purchased hit a new high last week, at 1,089 BTC, worth $7.1 million according to Coin Dance. CCN expects this record to be broken this week as well.⠀
Tether Tanks as Traders ‘Lose Trust,’ Other Cryptos See Price Boost
Monday, Oct. 15: Crypto markets are seeing solid growth, with virtually all of the major cryptocurrencies seeing green as of press time. An outlier in the space is “stablecoin” Tether (USDT), which has today lost its U.S. dollar peg and is trading well below its historical trading range as of press time
Tether is currently trading at around $0.96, down about 3.05 percent on the day, according to CoinMarketCap.
Although reasons for the USDT price plunge are not confirmed, there have been reports of an alleged loss of market trust leading to a possible sell-off: yesterday, a Bloomberg article suggested that investors are “losing faith” because of the ongoing lack of transparency surrounding Tether’s claims to be backed one-to-one by the US dollar.
In the past, critics have accused Tether of operating a fractional reserve and covering over its alleged reserve deficit in complicity with associated exchange Bitfinex, with rumors mounting when Tether allegedly dissolved its relationship with a third-party auditor this January.
At the end of this June, an unofficial audit of Tether confirmed that the stablecoin had the appropriate amount of dollar holdings as compared to its token issuance.
As reported Oct. 8, Bitfinex has also been prompted to officially respond to online rumors that claimed the exchange was “insolvent” and possibly facing banking issues.
The exchange’s rebuttal was partly prompted by reports that its banking partner, Puerto Rico’s Noble Bank International, is now seeking a buyer and had lost both Bitfinex and affiliated firm Tether as clients. In response, Bitfinex stated that all Noble-related allegations “have no impact” on its operations, survivability, or solvency.
Several days later, Bitfinex temporarily suspended all fiat wire deposits for the euro.🤔